|1||📈 $28.5K in GMV and 175.000 listing views in the past year, on a $0 marketing budget.|
|2||💡 YCombinator Startup School S19 & Google for Startups Campus alumnus|
|3||🍬 Toffee.com URL, authoritative website real estate, and the Toffee brand name|
|4||🏬 Marketplace is up and running with 3300+ users and 3650+ listings created|
|5||💨 Easiest and cheapest way to sell digital goods. Get started selling in minutes rather than days|
|6||🛍️ Simplest and safest way to purchase digital goods. Browse, compare, and buy instantly|
|7||💸 $200K+ self-invested to build the infrastructure (before incorporating Toffee in April 2020)|
|8||😷 Pandemic-Proof. Toffee is completely virtual and helps people earn an income online!|
I invested in Toffee for many reasons and I truly believe Toffee will become the eBay of digital products. The founding team, booming e-commerce industry, and the fact that Toffee accepts Bitcoin through a partnership with Wyre made this investment a no-brainer for me. The current round with a 5M valuation cap allows others the opportunity to invest in the absolute ground floor and one I could not pass on. The story of Toffee is just getting started, but I believe tech giants like Shopify, Amazon, or eBay will ultimately acquire Toffee. Let's go!
We've spent years rethinking the way digital goods are traded online. Where this used to be an inefficient and arduous process, we at Toffee have transformed it into a simple and seamless experience accessible to anyone across the globe. Think of Toffee as eBay, but exclusively built for trading digital goods.
Trading digital goods online has always been a bad experience. We all know that traditional marketplaces, like eBay and Craigslist, aren't built for trading digital products.
Did you know that you have to pay $9.95 per digital good listing on eBay? Accidentally break one of their unnecessarily complicated rules? Face listing and/or account deletion. Navigating this minefield is a draining process, so most (rightly) decide to stop selling altogether. Don't take our word for it: here's a link to their policy.
We've completely rethought and overhauled the trade experience from the ground up. No longer do trades need to involve manual interactions such as checking whether a customer made a payment, or whether you did indeed send that digital file to a customer. Toffee automatically takes care of it. All of it.
Create unlimited stores & listings for free, have your digital products automatically sent to your customers, generate coupons which your customers can use during checkout, and do so much more...
The numbers don't lie. Without a marketing budget (and a tiny team) Toffee has grown to over 3300 registered users with $28.5K+ worth of sales processed in the past year and a half.
Now imagine what we could achieve with a marketing budget and an all-star team behind the marketplace 🤯
Toffee will have three primary revenue streams:
As an example: If we process $1M in sales per month and charge a 5% platform fee per sale, we'll have $50K in gross monthly revenue from platform fees alone.
We have already attended YCombinator Startup School and are a member of Google for Startups Campus. What's more, Toffee has near-complete feature parity with the likes of Shopify and other known competitors, while we've also already been joined by value-add startups such as Wyre. And just to think that we have only just gotten started.
Toffee is useful for people from all walks of life and all ages. From your son wanting to buy a discounted Xbox Live gift card, to you wanting to self-publish a fantasy novella in digital format. Toffee helps you do it.
This endeavor, to build a digital rocket ship and realize our shared vision of becoming the eBay for digital goods, has only just begun.
If you believe in this vision and want to be part of our success, we'd love for you to join us. Let's shake this industry up and write history.
It's time to build!
Toffee.com has financial statements ending August 31 2020. Our cash in hand is $565.33, as of October 2020. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $164.77/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Toffee helps people buy and sell any digital product imaginable.
Whether it's an eBook, video, gift card, or game key; you can automatically buy & sell it on Toffee in a simple and secure way.
In 5 years, we hope to become the de facto marketplace for buying and selling digital goods. We hope that Toffee will be the top-of-mind platform for every digital native when they think of the secondary market for digital products. We hope to see our community grow from its current size of ~3k users to well over 10 million users. Also, we hope to have partnered up with various businesses to provide value-add services to our users. These are future projections and are not guaranteed.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
Toffee, Inc. was incorporated in the State of Delaware in April 2020.
Since then, we have:
Historical Results of Operations
Our company was organized in April 2020 and has limited operations upon which prospective investors may base an evaluation of its performance.
Related Party Transaction
Refer to Question 26 of this Form C for disclosure of all related party transactions.
Liquidity & Capital Resources
To-date, the company has been financed with $200,000 in cash-in capital. This was invested by the founder during the period from approximately Jan. 2017 until mid-2019 to build out the Toffee marketplace.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 18 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 18 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
Toffee, Inc. cash in hand is $565.33, as of October 2020. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $164.77/month, for an average burn rate of $164.77 per month. Our intent is to be profitable in 18 months.
Since August 31, 2020 there have been no material changes or trends in the finances or operations. This is due to the fact that the company has been very recently incorporated.
As Toffee is in its early stages and a completely virtual company, we expect our revenues and expenses to be similar to the last 3 months over the next 3-6 months. The platform has already been built, but we need $50K more to spend on marketing, building out the team, etc. We expect with that $50K we will be able to become operational and generate revenue. A combination of free cloud credits and relatively cheap engineering costs would allow us to keep our expenses below $3K / month, making a runway of 18 months achievable.
Once we do become operational, assuming we are able to achieve 1,000 active sellers each processing at least $1,000 in sales per month, with a platform fee of 5%, we hope to be making $50K in revenue per month. This excludes listing promotions and premium seller subscriptions. Expenses would be relatively proportional to the revenue in order to keep gaining traction. The timeline for this would depend on how much we raise through Wefunder and how quickly we can scale, potentially 12 - 18 months.
We don't have any other sources of capital in the immediate future on which we could reliably rely.
Traction: Toffee may never gain enough traction to hit scale to create any meaningful network effects. This may result in a platform where few, if any, utilize it.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions.
Technical: The Toffee back-end may not be capable of handling an influx in traffic, which would result in a loss of service for many, if not all, buyers and sellers on the marketplace.
Regulatory: The digital goods ecosystem is subject to various international rules and regulation which can sporadically change to the adverse effect of Toffee
Competition: An indirect competitor may decide to move into the P2P space for digital goods, which may lead to a loss of users and traction on Toffee
Pandemic: Even though a marketplace for digital products isn't directly negatively affected by the COVID pandemic, Toffee could negatively be affected if global online spend on digital products lessens due to loss of income
User Data: As Toffee grows, we will be handling more and more relatively sensitive user data which includes, but is not limited to, username/ (encrypted) password/ email address/purchase history. In the unlikely case the platform gets hacked and this data falls in the wrong hands, it could negatively affect usage of the marketplace and result in loss of traction
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